Abstract

RICKER, Martin et al. Health impacts from air contamination in Mexico City, and a proposal to promote electric cars. Inv. Econ [online]. 1999, vol.59, n.227, pp.45-75. ISSN 0185-1667.

Mexico City's air is highly contaminated by a mixture of gases (especially ozone) and particles. In 1994, the average of all emitted contaminants was about 7.3 tons/day/km2 . The high levels of air contamination can lead to the premature death of people, while causing alterations in a large portion of the exposed people and clearly lowering the quality of life. Adverse effects in the health of children and an increase of the cancer rate have been discussed. In 1994, traffic was responsible for 75% of the emitted pollutants in Mexico City. Consequently we propose and exemplify the introduction of an inductive tax and subsidy system to favor the purchase of electric cars with zero emission, while discouraging the purchase of gasoline cars. In this system, the government would not earn additional taxes, while correcting efficiently the market failure of not providing the non-market good "clean air".

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